Tag Archives: brexit
Over 82,500 sales recorded in England and Wales in June
More than 82,500 residential and commercial land and property sales in England and Wales were lodged for registration in June 2016, according to the latest data to be published. Of the 82,530 sales lodged for registration 60,249 were freehold and 9,000 were newly built, the figures from the Land Registry show. Some 442 were residential sales in June 2016 in England and Wales were for £1 million and over and 283 were residential sales in June 2016 in London for £1 million and over, the data also shows. A breakdown of the figures shows that of the total sales 18,910 were detached properties, 20,987 were semi-detached, 23,485 were terraces, and 17,599 were flats or maisonettes. The most expensive residential sale in June 2016 was of a terraced property in the City of Westminster in London which was sold for £16.9 million while the cheapest residential sale was a terraced property in Bishop Auckland, County Durham, which sold for £12,500. The most expensive commercial sale in June 2016 was also in the City of Westminster, London for £65 million and the cheapest commercial sale in June 2016 was in Bassetlaw, Nottinghamshire for £1,000. Continue reading
First time buyers in UK not impacted by Brexit vote
Buyers in the UK seemed largely unperturbed in the run up to the European Union referendum in June with sales to first time buyers increasing. According to the latest monthly report from the National Association of Estate Agents (NAEA) demand for housing increased as well while supply of available properties and the number of sales going through were stable. However, immediately following the result to leave the EU, agents witnessed uncertainty from sellers, and supply fell momentarily. Overall in June, estate agents saw an increase in demand which the NAEA says suggests that buyers weren’t fazed by the risk of Brexit in the lead up to the vote. There were an average 330 house hunters registered per member branch last month, up 9% from May when 304 buyers were registered, the lowest number recorded since November 2013. However, although June saw growth in the number of prospective buyers, demand still remains low in comparison to June last year. Meanwhile, some 57% of agents reported a drop in demand from prospective buyers and 58% saw supply fall in the week immediately following the vote. However, it is expected this will level out in July. First time buyers in particular were not impacted by the Brexit result. Immediately following the result only 28% of NAEA agents witnessed uncertainty from this group of buyers, while 30% of total house sales in June were made to first time buyers, the highest number of sales since October last year. The Brexit vote did not affect the number sales that completed in June either, with a total of eight sales completing per branch last month, a figure which has not shifted from May. Further to this, the supply of available housing also remained the same with an average of 37 properties registered per member branch in June. ‘In periods of extreme political and economic uncertainty, the housing market will always respond. However, it’s a relief to see that looking at the whole month overall, buyers were still keen to buy, sellers were still keen to sell and sales were still going through at the same level as we’d expect,’ said Mark Hayward, NAEA managing director. ‘It’s only natural that immediately following the vote supply fell but our figures show that the lead up to the vote wasn’t all doom and gloom, which should be a good indication of the months to come,’ he explained. ‘We remain upbeat and need others in the industry to do so as well. The new Housing Minister confirming his commitment to building £1 million new homes will be encouraging for many buyers, especially those looking to buy their first home. Hopefully we should soon see housing market confidence bouncing back to the levels seen pre-Brexit,’ he added. Continue reading
Steady growth for UK commercial property returns and rental values in June
Commercial property returns and rental values saw steady growth in the UK in June but capital value growth slowed, according to the latest index report. Overall, rents across the UK grew by 0.2% in June, matching the trend for the year to date despite uncertainty in the build up to the EU referendum, according to the latest CBRE Monthly Index. But capital values grew by 0.1% over the month, a drop on 0.2% in May although the 0.6% total returns for the month matched returns seen almost every month of the year to date. In the first half of 2016 as a whole, rental value growth hit 1.1%, trailing the 1.7% seen in the same period of 2015. Capital values grew by 0.6% for the first six months of 2016, some way shy of the 4.1% in the first half of 2015. Total returns were also lower, from 6.7% in the first half of 2015, to 3% in the first half of 2016. The reports says that this lower return partly reflects an increase in stamp duty land tax in March. The retail sector experienced rental growth of 0.1% in June, above trend for the year so far, but capital values, which had been flat in April and May, fell by 0.2%. Total returns in the sector were 0.3%, compared with 0.5% the month before. The industrial sector experienced a strong monthly performance, with rents increasing by 0.4%, equal to its best monthly performance in 2016. The office sector saw rents grow by 0.3% in June, an improvement on the 0.2% of both April and May and in line with trend so far this year, while capital value growth slowed slightly from 0.4% to 0.3%. London offices mirrored this overall trend. Rental values rose by 0.3%, faster than the 0.2% seen in May, and capital value growth slowed from 0.6% in May to 0.5% in June, producing total returns in June of 0.8%. The London office market saw some outliers. Rental values in West End and Midtown offices were flat, down from 0.1% growth in May, while capital value growth also cooled to 0.2% from 0.5% in May. Offices in the City of London also experienced muted growth in the month, with rental growth of 0.2% and capital value growth of 0.1%, down from 0.6% and 0.3% respectively in May. ‘Overall, rents and capital values continued to grow in June, with the industrial sector in particular showing strong growth in a month of significant uncertainty. Clearly, capital value growth has slowed, but occupier demand has remained high across the country, pushing up All Property rental growth as fast as any other month this year,’ said Miles Gibson, head of research at CBRE UK. ‘These figures reflect CBRE valuations carried out in the days immediately following the referendum vote, but July’s monthly index will give a much clearer… Continue reading
